Ethereum retests key breakout, $10,000 price target still in play

Testing the breakout: Cup-and-handle pattern in focus

After briefly moving above the neckline of a classic cup-and-handle formation, Ethereum has pulled back to retest this crucial price point. This neckline, between $1,825 and $1,850, has served as a significant resistance level several times in the recent past.

Ethereum climbed as high as $1,930 following the breakout but failed to hold those gains, bringing its price back to the edge of the previous resistance zone. Market analysts view a rebound at these levels as a potential sign that former resistance has turned into new support, keeping Ethereum’s bullish structure intact.

If buying demand returns and the price holds firm above the neckline, attention could quickly shift toward resistance at $1,900 and $1,950, with the psychologically significant $2,000 level also acting as a key target for traders in the short term.

A decisive loss of momentum at the neckline would weaken the technical pattern and may signal another failed breakout, increasing the risk of a larger correction. In such a scenario, Ethereum may first revisit $1,775, with substantial support expected near $1,700 if the decline continues.

Long-term outlook: Multi-year channel supports $10,000 projection

On a broader timeframe, Ethereum remains near the bottom edge of a long-term ascending price channel, having recently defended support within the $1,537 to $1,683 weekly demand zone. Technical strategists suggest that as long as this area holds, the overarching upward trend remains intact, offering a path to much higher price levels.

Chart analysis indicates that Ethereum briefly dipped below its long-standing trendline before buyers lifted it back above, producing a strong bullish candle on the weekly chart. However, for confidence to build, Ethereum needs to maintain support around $1,700 to $1,800 and regain control of the high-volume trading zone above $2,000.

The journey toward the upper boundary of the channel, projected at $10,000 to $12,000, faces several obstacles. Ethereum would first need to overcome sellers in the $3,000 to $3,400 range and revisit last cycle’s highs near $4,800. Further momentum could challenge resistance at $6,400 before any approach to five-figure price territory.

A breakdown below the $1,537 to $1,683 order block could threaten the recovery, potentially leading Ethereum to test liquidity near $1,200 before any substantial reversal emerges. Overall, the five-figure target remains a long-term possibility, contingent on Ethereum’s ability to hold key support levels and reclaim former areas of high trading activity.

Mini dictionary: Cup-and-handle pattern – A technical analysis chart pattern that signals potential for a bullish breakout, consisting of a rounded “cup” base followed by a smaller consolidation or “handle” before an upward move.